3) Consider transfer of income - In some cases, this is called splitting of income. Here is a general truth about taxes ---> The higher your marginal is, the higher marginal tax you ought to pay. How can you do this? By employing a family member to your business. You can consider your wife or teenager daughter who can be employed to a position lower than yours. For the government not to think that you are abusing this option to your advantage, be sure to match the income of your employed loved one to the position he or she holds. As you reduce your marginal tax, your teenage child, for one, would pay less taxes.
4) Is your small business home-based? - If yes, some or a part of your electricity and water bills can be attributed to business expenses. The same is true for the gas in your car. You just have to note which amount of these items went off for business purposes. Home maintenance, cleaning materials and home insurance can be deducted from small business taxes too. Perhaps, you are entertaining potential clients in your home too. Just keep the receipts of the food or things you